Seller reject survey valuation?

lookstraightahead

I guess having been in negative equity in the past and having to sell at a loss, so ending up with a huge debt, it made me more wary going forward. I have a small mortgage now and a lot of equity (relatively) which I don't take for granted with the housing market. I don't think I will move again and love my home, but I also don't like the feeling that I can't move if I wanted to (having lived all over the country).

I don't really see my house as "security" (from a financial perspective) I perhaps see it as a bit of a threat.
I see people taking on these huge mortgages at relatively low interest rates and assuming they can stay put for years, buying a 'dream'. They live to the top of their means and then can't afford the rise in interest rates and then perhaps the value of their property decreases. Not all can stay put, they might have to move for work, or divorce etc.

so to me (and it appears I'm in the minority 😂) i will only pay what it's worth to me if it's below or the same value as what I 'think' it would be worth to someone else going forward. 

mi-key

I agree with a lot of the recent comments on here.  If you are buying a £500K house and having to borrow £450K of that then you probably do want to get the best deal you can and worry about valulations as you have no real wiggle room. 

If you are buying a £500K house and have £400K equity from your last house then you are only really spending £100K and can overpay or pay the asking if you find something that suits what you are looking for without having to worry about lenders valuations or what the price or interest rates are going to do over the short term.

Even better if you are downsizing or moving to a cheaper area, then really you can pay whatever you think it is worth to get the house you want.

RelievedSheff

lookstraightahead said:

I guess having been in negative equity in the past and having to sell at a loss, so ending up with a huge debt, it made me more wary going forward. I have a small mortgage now and a lot of equity (relatively) which I don't take for granted with the housing market. I don't think I will move again and love my home, but I also don't like the feeling that I can't move if I wanted to (having lived all over the country).

I don't really see my house as "security" (from a financial perspective) I perhaps see it as a bit of a threat.
I see people taking on these huge mortgages at relatively low interest rates and assuming they can stay put for years, buying a 'dream'. They live to the top of their means and then can't afford the rise in interest rates and then perhaps the value of their property decreases. Not all can stay put, they might have to move for work, or divorce etc.

so to me (and it appears I'm in the minority 😂) i will only pay what it's worth to me if it's below or the same value as what I 'think' it would be worth to someone else going forward. 

We were also in negative equity with our last property for a long time.

At no point did it become a problem for us. We could comfortably afford the mortgage, even when we dropped onto the SVR, so we just carried on paying the mortgage and kept a roof over our heads.

It meant we had to stay in that house for much longer than anticipated, we had expected 5 years but ended up there for 13 years, but it wasn't the end of the world.

Unlike you we see our home as security and a means to a secure a financially sound retirement. With our home paid for we will have more free funds to go out and enjoy what we have earned in our retirements.

We really don't think we will move again and it would have to be something very special to convince us to move. But equally if we do decide to move then the house won't stop us doing that.

MobileSaver

lookstraightahead said:

I also don't like the feeling that I can't move if I wanted to

Why can't you move if you wanted to?

lookstraightahead said:

I don't really see my house as "security" (from a financial perspective) I perhaps see it as a bit of a threat.

I see people taking on these huge mortgages at relatively low interest rates and assuming they can stay put for years, buying a 'dream'. They live to the top of their means and then can't afford the rise in interest rates

I genuinely feel sad that people have such glass-half-empty viewpoints. Yes, everything we do in in life has a risk (life would be pretty pointless and boring if there wasn't) but the reality is that the risk is absolutely tiny.

Even at the height of the most devastating financial crisis in a generation, the worst it ever got was a fraction of one percent of home-owners losing their home and since then rules have been tightened so much that should the same happen again even less will be affected.

It's right to be cautious but no-one should let the fear of worst-case-scenarios stop them from enjoying life.

lookstraightahead

MobileSaver said:

lookstraightahead said:

I also don't like the feeling that I can't move if I wanted to

Why can't you move if you wanted to?

lookstraightahead said:

I don't really see my house as "security" (from a financial perspective) I perhaps see it as a bit of a threat.

I see people taking on these huge mortgages at relatively low interest rates and assuming they can stay put for years, buying a 'dream'. They live to the top of their means and then can't afford the rise in interest rates

I genuinely feel sad that people have such glass-half-empty viewpoints. Yes, everything we do in in life has a risk (life would be pretty pointless and boring if there wasn't) but the reality is that the risk is absolutely tiny.

Even at the height of the most devastating financial crisis in a generation, the worst it ever got was a fraction of one percent of home-owners losing their home and since then rules have been tightened so much that should the same happen again even less will be affected.

It's right to be cautious but no-one should let the fear of worst-case-scenarios stop them from enjoying life.

I don't feel I'm risk-averse in my life. Far from it. I run my own business, I travel, I do all the things that matter to me. In fact, I think seeing property as security is a bit glass half empty.
you don't need to feel sad for me honestly I still will have my house, I just don't rely on it financially. 

lookstraightahead

RelievedSheff said:

lookstraightahead said:

I guess having been in negative equity in the past and having to sell at a loss, so ending up with a huge debt, it made me more wary going forward. I have a small mortgage now and a lot of equity (relatively) which I don't take for granted with the housing market. I don't think I will move again and love my home, but I also don't like the feeling that I can't move if I wanted to (having lived all over the country).

I don't really see my house as "security" (from a financial perspective) I perhaps see it as a bit of a threat.
I see people taking on these huge mortgages at relatively low interest rates and assuming they can stay put for years, buying a 'dream'. They live to the top of their means and then can't afford the rise in interest rates and then perhaps the value of their property decreases. Not all can stay put, they might have to move for work, or divorce etc.

so to me (and it appears I'm in the minority 😂) i will only pay what it's worth to me if it's below or the same value as what I 'think' it would be worth to someone else going forward. 

We were also in negative equity with our last property for a long time.

At no point did it become a problem for us. We could comfortably afford the mortgage, even when we dropped onto the SVR, so we just carried on paying the mortgage and kept a roof over our heads.

It meant we had to stay in that house for much longer than anticipated, we had expected 5 years but ended up there for 13 years, but it wasn't the end of the world.

Unlike you we see our home as security and a means to a secure a financially sound retirement. With our home paid for we will have more free funds to go out and enjoy what we have earned in our retirements.

We really don't think we will move again and it would have to be something very special to convince us to move. But equally if we do decide to move then the house won't stop us doing that.

I had an irretrievable marriage breakdown and had to sell, whilst having negative equity.

I have security in other things so that I can have a good retirement too. Actually the house will be paid off soon but I don't rely on it for my (our) retirement. I don't trust the housing market. But then I'm not going to because of my experience. 

gsw55

If the valuation is the lenders valuation then it may affect the LTV and the amount the lender is prepared to lend. Unless the survey has highlighted any specific issues the seller has no reason to take any notice of it whatsoever. If you have sufficient capital to put into the purchase not to be impacted by a lower valuation then shouldn’t be an issue. If you are not. Happy you have the option to walk away.

plumb1_2

I’ve always bought a property as a home not a investment.

mi-key

plumb1_2 said:

I’ve always bought a property as a home not a investment.

Absolutely! I think its weird when people refer to their home as an investment. OK, it is good to have a large amount of equity in case it is needed at some point, but first and foremost it is the security of owning your own home where you can do whatever you like and have a roof over your head. 

I imagine a lot of people who bought just before 2008 ended up in negative equity, but how many actually had to sell at a loss, or lost their homes? Hardly any, and how many of those who bought then are still in negative equity now, I would guess none.

Negative equity means nothing unless you have to sell the house and can't buy another one at the same time. 

fackers_2

lookstraightahead said:

I guess having been in negative equity in the past and having to sell at a loss, so ending up with a huge debt, it made me more wary going forward. I have a small mortgage now and a lot of equity (relatively) which I don't take for granted with the housing market. I don't think I will move again and love my home, but I also don't like the feeling that I can't move if I wanted to (having lived all over the country).

I don't really see my house as "security" (from a financial perspective) I perhaps see it as a bit of a threat.
I see people taking on these huge mortgages at relatively low interest rates and assuming they can stay put for years, buying a 'dream'. They live to the top of their means and then can't afford the rise in interest rates and then perhaps the value of their property decreases. Not all can stay put, they might have to move for work, or divorce etc.

so to me (and it appears I'm in the minority 😂) i will only pay what it's worth to me if it's below or the same value as what I 'think' it would be worth to someone else going forward. 

Thanks for sharing, great insight. Totally agree too, the value for us is living there and enjoying it.